CoreWeave vs. Nebius: Wall Street Expects Double-Digit Gains From Only One of These AI Players

Core Insights - The AI stock market has seen significant investment, particularly in companies involved in various technology sectors, with notable gains from Nvidia and SoundHound AI, which have increased by 1,300% and nearly 400% over three years respectively [2] - The GPU-as-a-service (GPUaaS) sector within cloud infrastructure has emerged as a key area of growth, driven by the high demand for graphics processing units (GPUs) essential for AI model training and inferencing [3] Company Highlights - CoreWeave has experienced a stock price increase of over 200% this year, focusing on AI workloads and optimizing its offerings for efficiency, distinguishing itself from major cloud providers [4][5] - CoreWeave's close relationship with Nvidia, which owns 7% of its stock, has facilitated its early access to Nvidia's latest platforms, enhancing its competitive edge [6] - CoreWeave reported a revenue growth of over 400% year over year in Q1 and tripled its revenue year over year in Q2 [7] Nebius Overview - Nebius, formed from the reorganization of Yandex, focuses on renting compute and managed services for AI platforms, and has seen a surge in demand [8] - Nvidia holds approximately 1.5% of its investment portfolio in Nebius, indicating confidence in its potential [9] - Nebius reported a quarterly revenue increase of over 600% to $105 million and raised its annual run rate revenue guidance to between $900 million and $1.1 billion [10] Market Predictions - Wall Street forecasts a 6% increase for CoreWeave and a 23% increase for Nebius over the next 12 months, with some analysts predicting gains of 75% for CoreWeave and 66% for Nebius [11] - Both companies are positioned to benefit from the growing demand for GPUaaS, suggesting potential for long-term revenue and stock performance [13]